Super Bowl 2013 to trigger $5 million payment from Louisiana to Saints

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The New Orleans Saints will receive a $5 million windfall from state coffers as a reward for hosting the Super Bowl, under the terms of an agreement negotiated by Gov. Bobby Jindal and Tom Benson in 2009. The bonus comes on top of the $6 million the state is paying to support the Super Bowl Host Committee’s operations before and during the game.

The bonus was a little-noticed part of the negotiations between Benson and the state that committed the Saints to stay in New Orleans until 2025 and obligates Louisiana to pay $5 million every time the team hosts the Super Bowl. The Greater New Orleans Sports Foundation announced earlier this week that it would like to make a bid for the 2018 game.

Asked about the incentive, Louisiana Division of Administration spokesman Michael DiResto touted the contract as a savings for the state and a way to keep Saints, and the economic activity the team generates, in New Orleans. DiResto cited a University of New Orleans study that estimated the Saints generate $22.1 million in direct state revenue.

"The deal between the state and the Saints was great not only for fans but for the whole state of Louisiana and our taxpayers," DiResto said.

Lawmakers will be presented with legislation to appropriate the money during the legislative session that begins April 8, DiResto said. Money for the bonus will come from self-generated revenue and not impact spending on health care or higher education, he said.

Lawmakers are already expecting a tight budget year, with the state facing a projected shortfall of roughly $1.2 billion.

The 2009 deal ended a $23 million a year subsidy payment from Louisiana to the Saints and is projected to save the state roughly $280 million over the life of the contract. As part of the agreement, the state invested $85 million in upgrades to the Superdome and leased office space in buildings owned by the Bensons.

Benson and Jindal signed the deal just weeks before New Orleans was selected as the site of this year’s Super Bowl. At the time, officials said getting an agreement in place was crucial to convincing NFL owners to hold the game in Louisiana.

In a separate set of negotiations after Benson bought the Hornets last year, the state agreed to extend $36.5 million in tax breaks for the team and make at least $50 million in improvements to the New Orleans Arena. Officials said at the time that deal would save the state about $70 million.

In addition to the bonus to the Saints, Louisiana is also kicking in about $6 million to help with the operations of the Super Bowl Host Committee. That money comes from Lt. Gov. Jay Dardenne’s budget.

Estimates suggest the Super Bowl could have an economic impact of between $425 million and $450 million, as fans and tourists descend on New Orleans, Dardenne spokesman Jacques Berry said.

“It’s a good investment by the state but we don’t believe it should all come out of our budget,” Berry said.